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The Italian Treasury sold 8 billion euros ($10.95 billion) of six-month treasury bills and EUR2.630 billion of two-year zero coupon notes, known as CTZ, the Bank of Italy said.

Yields moved higher in December in secondary markets, first in response to comments from the European Central Bank President Mario Draghi that were considered less dovish than expected over possible measures aimed at containing deflationary risks, even though the ECB reiterated that it would keep policy rates low for an extended period.

Upward pressure on yields increased a few days later when the U.S. Federal Reserve said it would reduce its monthly $85 billion asset purchasing program by $10 billion in January.

Italy has a further auction planned before the year is out, when it offers up to EUR5.5 billion in five- and 10-year fixed rate bonds, known as BTPs, on Dec. 30. However, proceeds from both Friday's and Monday's auctions will be accounted for in 2014 because investors will have to pay for their purchases in January.

Yield differentials--also known as spreads--between Italian and German bonds have narrowed throughout 2013 but might face a temporary halt around the year-turn, according to some analysts.

"The seasonal lack of market liquidity is a normal problem that these turn-of-the-year ... auctions tend to be able to cope with but the pending supply [on Dec. 30] may cancel out Italy's spread tightening potential in the near term," said Credit Agricole CIB strategist Peter Chatwell.

Following are details of the auction with amounts in euros. Figures in brackets are from the previous auctions held Nov. 27 and Nov. 26.

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